From: Team C: Mathew Rutz (TL), Yu Zhang, Airlea Lichtwalt, Jaran Bouie
To: Prof. Michael T. Manion
Course: Product Management MBA 759 Case: Harrington Collection
Harrington Collection’s is considering broadening their product classification and selection offering by potentially introducing a new active line of clothing, as consumer demand for casual comfortable clothes has increased on an annual basis. Despite these increases in consumer demand and clothing preferences, Harrington still has many concerns to address in order to effectively develop and implement new clothing lines, primarily dealing with industry markets, maturation, and the general competitive nature of the industry. The following addresses the main issue facing the Harrington’s Collection, which is how to remain competitive in a changing market without compromising or undermining their established brand quality and image. Based on our analysis of the launch criteria and expectations, we feel customers will have a positive reaction to this potential new line. Juicy’s example give our company confidence in attracting customers in both “moderate” and “budget” product classifications. Since Harrington already has a great reputation on the high end appeal market, the stylish active wear set would be a significant product addition to market to consumers as an extension of the brand. Furthermore, our survey findings indicated that 10% of customers purchasing apparel between the price ranges of $100 - $200 would buy a stylish or good quality active-wear set. In 2007, the annual sale for products in the $100-$200 range in women’s apparel was $222.2 Million. As a result, it can be anticipated that 10% of customer purchases would translate into $22.2 million sales, given the aforementioned survey results and historical sales reference. Although the total quality of the active wear is lower than other Harrington apparel, as 95% of purchasers were satisfied with the